Goulburn Murray Water (GMW) is the largest rural water provider in Victoria. It is also in charge of Australia’s largest irrigation network. With over 21,000 customers, Goulburn Murray Water should make price submissions to the Essential Services Commission (ESC) every four years.

In this price submission, Goulburn Murray Water must include prices and service levels that its customers will get within the said period. GMW made the last pricing submission on the 1st of July 2020. The next submission should apply from the 1st of July 2024.

Therefore, Goulburn Murray Water should put in their price submission by the 29th of September 2023.

The Purpose of the Price Review

The price submission should outline Goulburn Murray Water trading prices. This way, the Essential Services Commission ensures customers get value for their money. The GMW can only achieve this by consulting its customers and taking their opinions into consideration.

By the end of September, 2022, the ESC will provide a guidance paper. The paper provides all the information needed by the GMW to make their pricing submission complete. However, the GMW has service plans in place to start customer engagement.

Customer engagement aims to:

  • Find out customer priorities
  • Discover the needs and concerns of customers concerning GMW’s charges 
  • Establish customer satisfaction on the level of service they receive

New Regulations for Goulburn Murray Water’s Prices

The Australian Competition and Consumer Commission (ACCC) determined that GMW will cease to be a Part 6 operator after the 30th of June 2024. The ACCC made this decision in April 2022 under rule 23 of 2010’s Commonwealth Water Charge Rules.

Although new prices will follow the Victorian Water Industry Regulatory Order, the 2024 price review won’t be more different than previous GMW price reviews.

The new regulations insist that GMW’s prices be favourable to its customers. In addition, customer needs should be at the forefront.

The Goulburn Murray Water Price Review Process and Timeline

As earlier informed, the price submission deadline is the 29th of September 2023. However, if GMW fails to deliver by then, the ESC will indicate the maximum price for GMW.

However, if GMW makes the price submission in time, the ESC will use the following process:

Step 1 – Evaluation

The ESC has to go through GMW’s price submission to ensure it is high-quality. The commission must also check how the submission benefits consumers. The main role of the GMW is to ensure water allocations are fair.

In this first stage, the ESC also checks if further verification is necessary before they make their final decision. The commission fast tracks the assessment process if only minor changes are needed. It then makes a draft decision accepting the prices or proposing price changes. These moves bypass the second stage.

Step 2 – Further Verification

An expert at the ESC goes through the price submission, checking for any missing information. A full cost forecast review is mandatory before the ESC makes a final decision.

The ESC rejects or accepts the price submission once this additional verification process is complete. If the GMW fails to provide the additional information it needs, it cannot reach a draft decision.

Step 3 – Public Consultation    

Involving the public is inevitable when it comes to price submissions. The ESC makes the information it receives available to consumers. If all goes well, the commission decides, setting the prices for GMW.

It’s been almost four years since the GMW made their last price submission. Despite the minor regulatory changes made, the review process is not different. So, the price review for 2024 will follow the same process that other reviews followed in the past.